TaxTMI 
TaxTMI 
GST — FAQ relating to DMRC, CPWD and DDA dated 07-08-2017
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....eturn up to 30-6-2017 (as not deposited up to 30-6-2017). Reply : In terms of GST provisions, a service provider has the option to issue invoice within 30 days from the date of completion of service. So, if invoice is issued and payment is received on or after 1st July, 2017 then it is liable for payment under GST. To the extent, payment on provision of service had been made under the existing laws, it is not taxable under GST. (2) Further presently DMRC were taking Credit on Common Input Services used for Taxable and Non-Taxable/Exempted Services as per rule 6(3) of CENVAT Credit rules in old Regime Proportionately in the following manner : (a) At the year-end ration for taxable turnover w.r.t total turnover was calculated. (b) Manual records were maintained for whole financial year for Common Credit amount. (c) At the year-end amount of Eligible CENVAT calculated multiplying with Ratio, as calculated in point a) above. Note : - All above calculations are done at year end only currently, hence the said amount of CENVAT were shown through revised r....
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....ease see Rule 46 and 50 of CGST Rules, 2017 for information to be contained in Tax Invoice and Receipt voucher respectively. (7) What will be the treatment of Cenvat credit which remains unutilized on 30-6-2017? Reply : The unutilized credit can be transferred in terms of the transitional provisions contained in section 140 of CGST Act, 2017. (8) What will be the treatment of in case of revision or cancellation of invoice on which service tax has been paid by DMRC? Reply : Refund of service tax, if applicable, would be dealt under the service tax provisions only. (9) Contractors, mainly Non-Company/Body corporate, has provided services (on which RCM is applicable to DMRC) on or before 30-6-2017 to DMRC. These Contractors has not paid service tax or paid their portion only under partial reverse charge to the Govt. as they are not liable to pay the Service tax or liable to pay only their portion under partial reverse charge as per old regime. Query - The bills for above services are to be received in DMRC after 30-6-2017. Whether DMRC has to pay RCM on these services under old regime or not to pay RCM under GST? Scenario (1) - If DMRC has not paid RCM ....
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....fee was not subject to Service Tax. Queries : The fee is being paid to DMRC @ 6% of Rs. 5135 crores, i.e., Rs. 308 crores and till 30th June, 2017, DMRC has already received Rs. 225 crores. The quarterly advance fee for April-June, 2017, amounting to Rs. 20.91 crores was invoiced to NMRC on 30th June, but the payment is received by this office on 6-7-2017. Clarification is sought on whether the Apr.-June, 2017 quarter fees received after the appointed date is subject to GST? If yes, kindly suggest the action to be taken by this office in this regard. Reply : If the bills were issued on or before 30th June, 2017, liability arises under service tax. If bill was issued on or after 1st July, 2017, it is taxable under GST. (11) As per the contracts awarded on this corridor, it is forecasted that the completion cost of the project could be somewhere around Rs. 4,000 crores. However, DMRC's fees of Rs. 308 crores will be unaltered as a result of any saving (Para 2.2). This office is treating the fees received as advance revenue and it is subsequently booking as revenue periodically (say, yearly) as per the actual financial progress achieved. Till date, roughly Rs. 2,000 cro....
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....EC. The Indian partner is clearing the materials from the port by discharging the duties, taxes and other charges and then transporting the same to the site and performing installation, commissioning and maintenance job. Query : Kindly clarify the rate of GST applicable for the above type Contracts. Also, please clarify since the materials are imported separately in the name of DMRC, whether it will be construed as a supply contract and custom duty plus IGST is leviable at 28% slab rate? Further, since the duties and taxes are paid by the Consortium member on the import consignment in the name of DMRC, will the credit of IGST be reflected in DMRC's GSTN account? If yes, how the billing will be done by the Consortium to DMRC. Reply : From this description, tax rate cannot be suggested. Depending upon the nature of contract, it can be decided if it is taxable as a composite supply or separate supplies. If DMRC is the importer, credit of IGST on imports can be taken given other conditions related to ITC as contained in Chapter-V of CGST Act, 2017 are satisfied. (13) DMRC is having contract with fuel service provider agency for diesel and petrol requirement for DMRC v....
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....ted candidate or to the person who conducts the workshop. B. CPWD (1) currently DDOs are thinking what to deduct from Running Bills as many taxes are subsumed from 1st July. Reply : DDOs are required to deduct tax at the rate of 1% for CGST and 1% for SGST (2% in case of IGST) at the time of payment to the supplier where the contract value exceeds 2.5 lakh. The amount deducted should be paid by 10th of the month succeeding in which deduction was made. DDO should also issue the certificate within five days from the date of deposit into government exchequer. However, the provision of tax deducted at source (section 51 of CGST Act, 2017) has not been made effective as of now. (2) CPWD DDOs are not registered as it is to open from 25th July and DDOs are thinking that after any deduction of GST how to deposit the same and issue the deduction certificate to contractor. Reply : The deducted amount should be deposited in the challan prescribed for the purpose (FORM GST PMT-06). A certificate, called FORM GSTR-7A, has also been prescribed for the purpose. However, the provision of tax deducted at source (section 51 of CGST Act, 2017) has not been made effective....